Diesel price increase triggers concerns in transport and farming industries

THE recent announcement of a diesel price hike has sent shockwaves through South Africa's vital trucking and agricultural sectors.

- YOGASHEN PILLAY

Effective from Wednesday, prices for Diesel (0.05% sulphur) have surged by 65 cents per litre, while Diesel (0.005% sulphur) has seen an increase of 63 cents per litre. This news follows a decrease in petrol prices earlier in August, adding a layer of complexity to the economic landscape.

Tonny Molise, deputy president of the Truckers Association of South Africa (TASA), said they noted that diesel price increases were implemented alongside the recent decision to lower the interest rate by 25 basis points.

“While fuel hikes inevitably raise operational costs in the road freight and logistics industry, we welcome the interest rate cut as a much-needed stimulus for the economy. The lower borrowing costs place more disposable income in the hands of consumers," Molise said.

"This is a positive sign, as sustained consumer spending is essential not only for economic stability but also for the freight and logistics environment we operate in.”